Adelaide Hills Council spends $327,000 on legal fees last financial year, $80,000 more than last year

Adelaide Hills Council’s legal fees spiked by $100,000 earlier in the year – now staff have revealed the staggering amount it spent on lawyers in total.

Adelaide Hills Council's council chambers and building in Stirling.

Adelaide Hills Council’s legal fees have leapt by $80,000 after it was hit by “multiple unexpected events” throughout 2023 and 2024.

As the council deals with an unexpected $4.8m budget black hole and the turnover of a quarter of its staff, it said legal fees started to “spike” in January because of “confidential and complex governance matters” in late 2023.

Documents reveal it spent $327,710 on lawyers last financial year, $80,047 more than the previous 12 months.

“There has been a spike in legal fees in January 2024, stemming from events in late 2023,” council documents state.

“The rationale for this is primarily related to an increase in internal confidential matters that required legal advice in relation to council’s legal obligations and risk minimisation.”

The council’s legal fees jumped by $100,000 in May – it spent $169,841 by February, compared with $63,141 the previous year.

It means the council spent $157,869 between February and June 30 on lawyers.

The highest legal spend was in governance and performance, which shows a huge rise from a mere $6896 in 22-23 to $132,789. People and culture’s spend rose from $9534 to $47,085.

CEO Greg Georgopoulos said the increase in legal fees was “primarily a result of unexpected events, often of a confidential and complex nature”.

“The increase in legal fees is not due to any one matter but is a combination of multiple unexpected events,” he said. “Many of these matters have arisen in the governance portfolio.”

On its website, AHC says governance supports council “to provide accountable and transparent decision-making and ensure we meet our legislative obligations”.

Mr Georgopoulos denied the rise in legal fees was linked to the council’s staff turnover, after 49 staff – including senior directors and managers – left last financial year, nearly 25 per cent of its employees. About 20 positions remain unfilled.

“Generally, when staff leave an organisation, legal fees are not incurred,” he said.

“As such, the current legal fees are not associated with staff departures.”

He also said the rise in fees was not “directly” linked to another internal council controversy, in which Mayor Jan-Claire Wisdom was stripped of powers amid a confidential report into her use of a policy to obtain legal advice.

Mr Georgopoulos declined to reveal which law firms the council used.

The figures were revealed in response to questions from councillor Louise Pascale, who said it was important the council stayed “accountable” to ratepayers.

“I asked the question again as I wanted to see where we finally land at the end of the financial year on what we spent on legal fees,” she said.

“In our current financial situation I think it is important we stay accountable to ratepayers.

“It is their money we are spending after all and as councillors we work for them.

“That includes making sure we have the money to deliver the services and infrastructure they want and need.”

The council documents say AHC recovered $34,000 in legal fees the previous financial year, making the 23-24 fees appear higher.